Ahead of Valentine’s Day (14th February), Eleanor Levy, CCO of now:pensions, comments: “It’s often said that the key to a successful marriage or long-term relationship is clear and frequent communication. Talking openly and frequently about income, savings, financial plans, and retirement goals is not always prioritised with half of UK adults feeling that discussing money is taboo and 44% have avoided talking about money with their partner*. But it’s important to get on the same page, as over time, partners may adopt different roles in work and family life.
“Research shows that, on average, women take 10 years out of the workforce to raise families or take on other caring responsibilities, resulting in missing out on £39,000 worth of pension savings.
“Contributions from a partner or family member can help limit any shortfall. Couples can also benefit from the marriage allowance, which reduces the tax bill by up to £1,037.50 per year, especially if one spouse annually earns less than £12,570. More than two million eligible couples are thought to be missing out on this tax break; you can check via Gov.uk.
“And whilst marriage is (hopefully) entered into with the best intentions, we shouldn’t ignore that divorce rates are on the rise, particularly among those over 60, with more than 100,000 marriages ending each year. Pensions are often the second most valuable asset after a home, but property is often the greater focus during the divorce process. Despite this, more than 70% of couples don’t share their pension pots in the settlement. Ensuring that pension funds are considered by default in divorce settlements is a vital step toward addressing pension inequality.
“Communication about money, especially during major life changes, is essential to navigating both planned and unexpected financial challenges together.”
